Newsletter published monthly by Crop Quest, Inc. Volume No. 11, Issue No.

6, June, 2002

PERSPECTIVES
Official Publication of Crop Quest Agronomic Services, Inc.

Above-average wind speeds make for growing challenges

Strong winds have plagued the High Plains this year. Based on wind speed information from the National Weather Service in Dodge City, Kansas, the average 24-hour wind speed has been significantly higher during the last four months than it has been the previous four years, during this same time period (fig. 1). Figure 1 shows the average wind speed has exceeded 15 miles per hour for the past two months during corn planting season. This also means there have been few days which have been conducive to herbicide applications. Winds have caused serious erosion on sandier soils. Even on fields where farmers planted into no-till or minimum-till, the residue has been insufficient to hold the soil under such harsh conditions. Some corn fields have to be replanted due wind injury of the tender corn plants (fig. 2).

Fig. 1. Average 24-hour wind speed, Dodge City, Kansas.

Fig. 2. Some corn fields will need to be replanted.

Test plots offer valuable information for producers

This is the time of year when it is not uncommon to see flags, markers, or signs designating a research test plot in a farmers field. Test plots are an important part of the education of any agronomist or farmer. Whether they are replicated true research plots or just product demonstration plots, they all have value if they are interpreted for the information they may reveal. Replicated research hopefully gives a person some degree of confidence in what the results may show. The work is normally done by research personnel from land grant universities, from manufacturing companies, or from independent research consultants hired to perform the work. There are many variables that may affect the results, and hopefully the replication under similar conditions helps to reduce the effect of other variables, except for what is being tested. Product demonstration plots have value in showing how a product may perform under true field conditions in a local area. There is less emphasis on reducing other variables in the field, but more on looking at what effect the product has when applied under the existing conditions. All conscientious research has value, but it is the interpretation of the research from a qualified individual that has the most value to the person needing the results from the testing.

MISSION STATEMENT
Crop Quest is an employee-owned company dedicated to providing the highest quality agricultural services for each customer. The quest of our network of professionals is to practice integrity and innovation to ensure our services are economically and environmentally sound.

By Rollie Stukenholtz, CEO

Member, American Society of Agricultural Consultants Certified Professional Agronomist

Does getting big have to mean getting out?

Whether it is the grocery business or the cattle business, the trend toward bigness is like a snowball rolling downhill. When a Wal-Mart moves to town, very few competing businesses are around for long. In just a few years, chemical companies, seed companies, packing companies, feedyards, and even medical services have nearly all consolidated to get bigger. Most of us old country folks dont like talking to recordings when we want to conduct business. Today, it is becoming more and more difficult to talk to a human being when we call almost any business for information, or for clarification of bills that are often difficult to understand in this new environment. This seems to be a common element of huge organizations. While efficiency of scale is often the basis for growth and consolidation, business clout is really the major advantage of size. Big business means big volume and big dollars. In the business world, trainloads of volume become much more important than pickup loads. There is no doubt that there can be some advantages to efficiency of scale. Large companies have greater access to capital for research and the growing field of communication. We cannot overlook the fact that larger companies have much greater control of markets and prices. For years, we have had various groups try to organize farmers for this same purpose. Some say that when the farm population gets small enough, it might be possible to get farmers organized so they too have the clout to hold their own with the big boys. This may be just a dream that is a long way from reality.

Its a control issue

While we like to espouse our support of free competition, the truth is every business prefers being in control. Businesses have their own credit card system or financing program because it gives them control. The food industry likes to have control of as much of the produce they need through contractual arrangements. Control is power in the business world. We have known of many situations where a firm offers easy credit to farmers. In return for this easy credit, producers must buy all of their inputs from that source, and deliver all their harvested products to the same business. In many cases it involves locked-in prices, and pressure to use inputs that have questionable value. This type of control provides an excellent planning tool for the business. Some of it is required, such as pre-season booking of seeds and fertilizers. It helps companies plan their inventory and make better use of their application equipment. The advent of contract poultry and swine production locked in the market for feeds, and the supply for the processors. It also gave control to the processor. But some say it just made the farmer into a hired hand. Yet, many producers have done quite well by giving up control and becoming that hired hand. For others it has been a disaster.
Crop Quest Agronomic Services, Inc. Main Office: Phone 620.225.2233 Fax 620.225.3199 Internet: www.cropquest.com cqoffice@cropquest.com Crop Quest Board of Directors Chief Executive Officer: President: Regional Vice President: Regional Vice President: Financial Vice President: Manager, Garden City Div.: Rollie Stukenholtz Ron OHanlon Jim Gleason Dwight Koops Dave Wetmore Cort Minor

Insurance takes a hit, gives a hit

While most of us were forewarned, we are still shocked at how much our insurance rates have increased this year. A vast number of major catastrophes have driven insurance rates through the roof. There were several major hail storms last year that destroyed cars, airplanes and buildings. There was also massive hurricane damage. Then, the final straw came with the 9/11 terrorist act. I am often amazed at the poor understanding many people have for insurance and its purpose. When we take out a life insurance policy, we hope we dont have to collect, at least for awhile. Insurance is a tool to protect us from a major catastrophe. Many people have the idea that if they have insurance, they should be protected from everything that insurance covers. On the other hand, insurance companies exist to make money, just like every other business. If they lose money, they have to increase rates just to stay in business. A huge rash of claims, like those that occurred last year, were the basis for the huge rate increases we are all feeling. I guess we can call them acts of God over which we dont have much control.

Newsletter Editor: Tania Foster, tfoster@cropquest.com

Weed presence, dominance varies from year to year

By Ron OHanlon, president

Every growing season, there is an interesting observation that can be made regarding weeds. Although each year may differ as to which weeds are dominate for that season, this doesnt mean you wont have the weeds that normally grow. But, how aggressive they are in emerging and growing varies by season.

Crop Quest welcomes new employees, interns

Karissa Jones joins the Precision Services Division as a client support specialist. Her duties will include outside sales and customer service. Originally from Franklin, Ind., Karissa is a graduate of Purdue University with a degree in soil and crop science. She was a member of Sigma Kappa Sorority and was employed with a diversified farming operation while attending school. Karissa can be reached be email at kjones@cropquest.com. Ryan Thompson is the newest agronomist to the Leoti Division. Ryan is a crop science graduate of Fort Hays State University and is originally from Beloit, Kan. He can be reached by email at rthompson@cropquest.com. Matt Toll recently joined the Montezuma Division. A graduate of Kansas State University with a degree in agribusiness, Matt is originally from Lindsborg, Kan. He can be reached by email at mtoll@cropquest.com. The entire Crop Quest staff would also like to welcome the following summer interns and thank them for their hard work: Scott Evans, Bucklin, Kan., Dodge City Division; Matt Fishburn, Lawrence, Kan., Silver Lake Division; Garet Havel, Cuba, Kan., Garden City Division; Lonnie Hornung, Dodge City, Kan., Montezuma Division; Eric Konrade, Dodge City, Kan., Garden City Division; Charles McCormick, Timken, Kan., Great Bend Division; Robert Mulliken, Nickerson, Neb., Ulysses Division; Blaine Nichols, Seminole, Tex., Dumas Division; Tim Reh, Inman, Kan., Montezuma Division; Curtis Trecek, Cuba, Kan., Ulysses Division; Jeff Vogel, Hillsboro, Kan., Mt. Hope Division; Jeff Winter, Andale, Kan., Mt. Hope Division.

This year across the western High Plains, kochia (fig.1) and Russian thistle (fig. 2) have emerged throughout the region in greater proportions than normal. These two weeds are part of a group of weeds known as tumble weeds. On windy days, they can be seen rolling across the High Plains, scattering their seeds for future generations. On calm days, they may be found accumulated in fence rows, shelter belts, or road ditches, waiting for the next strong wind to carry them on their journey. Both weeds can be troublesome to control if they are allowed to get some size before control measures are taken. However, a lot of kochia is resistant to triazine and/ or sulfonylurea herbicides, which makes them even more difficult to control. Normally, it is best to apply control measures early in their life cycle, either with growth regular herbicides or mechanical tillage.

Fig. 1. Kochia.

Fig. 2. Russian thistle.

Employee-Owned & Customer Driven

By Ron OHanlon, President

Member, National Alliance of Independent Crop Consultants CPCC-I Certified

New farm program has pros and cons

ongress has finally put together a new farm program, which the President has signed it into law. At first glance, the Farm Security and Rural Investment Act of 2002 is like a two-edged sword. It has some very good features, leaving in place the flexibility of the previous farm program and establishing a little better safety net for farmers with direct decoupled payments and counter-cyclical payments. However, it does little for the free market system, and even discourages commodity prices from rising above the market loan rates. Most of the payments are still based upon a farmer producing a crop to reap the benefits. A farmer must still produce a crop to qualify for the loan rate and/or LDP payment. Farmers, who have various disasters through acts of nature and produce few bushels or pounds are still left without much help, unless they have crop insurance or Congress appropriates disaster relief. This particular program does little to encourage farmers to wean themselves away from government subsidies. Most farmers would not survive without these dollars to support their farming operations at the current

market prices. For many farms, their cost of production is above the present commodity prices. According to the March/April 2002 issue of Crop Decisions magazine, the average price of corn 20 years ago was $2.95, 10 years ago, $2.16, and five years ago, $2.10. The current mid-March price was $1.94. Other commodities have followed a similar pattern. Farmers and the farm program funding have really taken a beating in the major newspapers on the East and West Coasts. Even Rush Limbaugh has come down hard against this expenditure. Many are calling it welfare for the farmers. However, I truly believe few of these people understand how the farmer is not dealing with a free market system, because of the governments cheap food policy. Many foreign nations are shut off from trading with the American farmers due to embargoes for various political reasons. All this helps to keep food prices low for American consumers and commodity prices depressed for the American farmers. At Crop Quest, we will do our best to understand the complexities of the new farm program and help our clients maximize the benefits, if they chose to participate.

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Employee- Owned & Customer Driven
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